Yes, it is flakey and I have it all over my nose (and yes, it is worse on the sides where the nose begins) and on the chin as well. I can rub it off easily but it comes back in a couple of days so I don't do that at all. I have a feeling that my skin produces even more oil if I remove the layer which leads to more whiteheads (as if the dead skin layer works as an anti whitehead agent; it doesn't make much sense, I know).
I am an athlete and every time I get sweaty people ask me what kind of cream do I put on my face even though I don't use any product.
It have been living with this more than 5 years and I haven't noticed any permanent damage so far.